1 1 Secure Medical Information Exchange (MIX ™ ) System Sead Muftic SETECS Medical Technologies SETECS MIXSystem SETECS ® MIX ™ System Secure Medical Information Exchange System January 2011

2 2 SETECS ® MIX ™ System Presentation Overview: 1.) Status and Trends of the Medical IT Market 2.) SETECS MIX™ System: Concept and Current Deployment 3.) SETECS MIX™ System: Business Opportunities 4.) Conclusions and Next Steps

3 3 SETECS ® MIX ™ System Presentation Overview: 1.) Status and Trends of the Medical IT Market 2.) SETECS MIX™ System: Concept and Current Deployment 3.) SETECS MIX™ System: Business Opportunities 4.) Conclusions and Next Steps

4 4 SETECS ® MIX ™ System Healthcare IT Market: Status and Trends ( Existing EMR Systems ) 1.) Functionality and scope: some with complete functionality, most “single function” solutions 2.) Compliance to standards: very poor, mainly proprietary solutions 3.) Interoperability and scaling: not supported 4.) Extended functionalities: very limited 5.) Security: simple (user name / passwords, SSL), limited scope 6.) Consumer aspects: not supported

5 5 Needs and Requirements (Operational): SETECS ® MIX ™ System – Reliable and unique registration of patients – Accurate authentication of patients (based on biometrics) – Accurate authentication of patients (based on biometrics) – Collection and distribution of demographic, medical, administrative, – Collection and distribution of demographic, medical, administrative, financial, and other data in each hospital financial, and other data in each hospital – Sharing and transfers of data between hospitals – Registration and authentication of all professionals in each hospital – Registration and authentication of all professionals in each hospital – Authorization of professionals when accessing and using medical data – Authorization of professionals when accessing and using medical data – Protection of sensitive data (stored in databases and in transfer) – Protection of medical documents in storage, transfer, and use – Protection of medical documents in storage, transfer, and use Overall goal (Federal IT Strategic Plan) : Objective 1.1 – Privacy and Security: Facilitate electronic exchange, access, and use of electronic health information while protecting the privacy and security of patients’ health information Objective 1.2 – Interoperability: Enable the movement of electronic health information to where and when it is needed to support individual health and care needs

6 6 SETECS ® MIX ™ System Role-based Access Control within a Federated Network Secure Method of Accessing and Transferring Data Electronic Exchange of Medical Information Accurate Patient Identification System and Process Compatibility with each Site’s Existing EMR Implementations Compliance with National Standards Scalable Network

7 7 SETECS ® MIX ™ System Business Opportunities (Strategic Benefits) 1.) Reduction of costs 2.) Consolidation of providers 3.) Unit–revenue optimization (cash flow) 4.) Building patients volume 5.) Alternative sites of care 6.) IT security products and services 7.) Consumer–based solutions

8 8 SETECS ® MIX ™ System Presentation Overview: 1.) Status and Trends of the Medical IT Market 2.) SETECS MIX™ System: Concept and Current Deployment 3.) SETECS MIX™ System: Business Opportunities 4.) Conclusions and Next Steps

9 9 SETECS ® MIX ™ System SETECS ® MIX ™ System – Features and Properties 1.) Based on medical IT and Internet security standards and technologies 2.) Functionally and architecturally complete solution 3.) Several components in each hospital, linked and combined with existing EMR products 4.) MIX™ infrastructure: Regional/Group servers and Global MIX™ Server 5.) Modular and extendible 6.) Easy to install, administer and maintain

10 SETECS ® MIX ™ System MIX™ System in A Hospital Hospital MIX Server EMR Interface Admin Server Portal Server MIX DB MIX Server Admin Station MIX Smart Cards Station Smart Card Admin Doctor NurseAdmin EMR MediTech EMR McKesson EMR HealthLand EMR CPSI Security Card Hospital MIX SC Station Hospital MIX Medical Stations Security Card Security Card Security Card MIX Admin Security Card Lab IT System Radiology IT System Other IT System

11 SETECS ® MIX ™ System MIX™ Portal in A Hospital

12 SETECS ® MIX ™ System Security System - Hospital Level IDMS CA/PKI AAA Security Server Admin Station Security Admin Hospital MIX Server EMR Interface Admin Server Portal Server MIX DB MIX Server Admin Station Security Card MIX Admin Security Card Hospital Security Server

13 SETECS ® MIX ™ System MIX™ System - Regional / Group Center Level Hospital MIX Server EMR Interface Admin Med Info MIX DB HL7 Interface Admin Info MIX DB Group MIX Admin Station MIX Admin Security Card Hospital MIX Server EMR Interface Admin Med Info MIX DB Group X-PID Med Docs and Data Med Docs and Data Group MIX Server (Regional)

14 SETECS ® MIX ™ System SETECS ® Security Card Insurance : Insurance : CareFirst BlueChoice, Inc. ID X2C Group: Group: 9909 ADM: CERT PRE: CERT PCP : Smith, John CO-PAY : CD2200 P60 S90 ER400 RX VC Member Services: Member Services: 800–777–9999 Issuer: Issuer: UPHCN, Marquette, MI 49855, Tel: (906) 111–2222 SETECS ® Medical Card MIX™ Smart Cards

15 SETECS ® MIX ™ System Potential System Extensions: 1.) Extensions of the MIX™ system to consumers (patients) 2.) Extension with laboratory and imaging data 3.) Extensions to payers and insurance companies 4.) Extensions to physicians sector 5.) Extensions to pharmacies 6.) Extensions to State public health institutions 7.) Extensions to Federal public health institutions

16 SETECS ® MIX ™ System Presentation Overview: 1.) Status and Trends of the Medical IT Market 2.) SETECS MIX™ System: Concept and Current Deployment 3.) SETECS MIX™ System: Business Opportunities 4.) Conclusions and Next Steps

17 SETECS ® MIX ™ System Business Opportunities (Strategic Benefits) 1.) Reduction of costs – Administrative activities more efficient – Additional functions (beyond EMR): reports, inquiries, registries – Elimination of errors, duplicate procedures, fraud 2.) Consolidation of providers – Integration of diversified EMR systems – Centralized data repositories (healthcare data “banks”) 3.) Unit–revenue optimization (cash flow) – Automation / speed up of the billing process – Integration with internal accounting system (cash flow) 4.) Building patients volume – Advertising at Web sites – Information about alternative options and services

18 SETECS ® MIX ™ System Business Opportunities (Strategic Benefits) 5.) Alternative sites of care – Remote access to medical data (Web) – Telemedicine – Alternative service locations (pharmacies, churches, social clubs, etc.) 6.) IT products and services – Outsourcing data management capabilities (HIEs) – Integrated and transparent access to medical data (cross-indexing) – Consolidation of existing IT products (EMR, UPCare, e’Index, etc.) 7.) Consumer–based solutions – Direct–to–consumer services (Web, smart cards) – Mobile services (distribution of data, payments)

19 SETECS ® MIX ™ System Revenue Model and Opportunities 1.) Smart cards – Revenue per card (price: $ 9.95 / card, margin: about $ 5 / card) – Patient’s subscription (approx $ 10 / year) for additional on–line services – Potential for additional revenue (payments using smart cards, “hosting” additional applets) 2.) Software products (one–time) – Individual servers – MIX and Security (approx $ 30,000 / server, about $ 200,000 / hospital) – Various stations (MIX/PIV SC: $ 20,000 / station; Web station: $ 50 / station) 3.) Services (recurring) – Issuance of cards ($ 9.95 / card) – Software maintenance (15% annually of the list price) – Digital Certificates ($ 10 / four certificates) – “Aggregate” services (insurance companies, pharmacies, states, Federal)

20 SETECS ® MIX ™ System Presentation Overview: 1.) Status and Trends of the Medical IT Market 2.) SETECS MIX™ System: Concept and Current Deployment 3.) SETECS MIX™ System: Business Opportunities 4.) Conclusions and Next Steps

21 SETECS ® MIX ™ System Next Steps: 1.) Additional MIX materials (Project in Michigan, PPT as a demo) 2.) Meeting with SETECS Medical Technologies team 3.) Demo in Lanham (CLEXO Cloud) 4.) Discussion about cooperation and partnership 5.) Proposals to first opportunities

22 Secure Medical Information Exchange (MIX ™ ) System Sead Muftic SETECS Medical Technologies SETECS MIXSystem SETECS ® MIX ™ System Secure Medical Information Exchange System January 2011